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20 Year Old and Want to Invest Money

Q

QueHuong

Platinum Member
Please recommend resources for a college student to get started in investments (sites, articles, books, forums, etc.)

So far, here is what I plan on doing:

- Place $1000 in Roth IRA and contribute $1000 yearly thereafter

- Open up an Ameritrade or eTrade account to invest $1000 in stocks. Probably mutual funds or specific stocks in one of the following industries: Healthcare, REIT, technology.

Is $1000 enough to play the stock market? It's only initially meant for me to get started and gain experience before I invest more money into the stock market.

Any tips?
 
Roth IRA with Vanguard is the best option IMO. That's if you dont want the money anytime soon, house or retirement investments.
 
Originally posted by: Jassi
Originally posted by: Bryophyte
1. www.fool.com
2. www.sharebuilder.com (if you have a Costco membership, sign up through them to get a huge sign on bonus (50-75 bucks with the Passport coupon book, a bit less regularly)
Click to expand...

How much effort does it take time wise to keep up with your investment? That what I want to know.
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A couple minutes a day during the week for me, and an hour or two quarterly. I probably *should* spend more time on it, but 1) I'm not a day-trader and 2) we don't have a huge amount in my or the kids' brokerage accounts yet. As our portfolios grow, we'll probably spend more time reading annual reports and crap like that.
 
I have to say that you're making a VERY GOOD CHOICE to start investing at your age. I was so broke when I was your age that the thought of "gambling" (as I saw it then) with money I needed to live on (plus the absolutely ridiculous cost of trading and maintaining a brokerage account back then) kept me from investing. I'm not making that mistake with my kids. They were 4 & 8 when we opened brokerage accounts for them. They're active in helping make decisions about how their money is invested. I don't want them to be afraid of it.
 
Let me be the first to say, investing = another form of gambling. And what does the good lord say about that?
 
I used to sell drugs that made me literally $1000 a day but lost all of that money in drugs & gambling. So fvckin stupid and wish I was into stock at your age. I'd say good on you.
 
Originally posted by: QueHuong
Please recommend resources for a college student to get started in investments (sites, articles, books, forums, etc.)

So far, here is what I plan on doing:

- Place $1000 in Roth IRA and contribute $1000 yearly thereafter

- Open up an Ameritrade or eTrade account to invest $1000 in stocks. Probably mutual funds or specific stocks in one of the following industries: Healthcare, REIT, technology.

Is $1000 enough to play the stock market? It's only initially meant for me to get started and gain experience before I invest more money into the stock market.

Any tips?
Click to expand...

i did just about the same thing as you, i think 1k is enough to start with. minor correction... REIT is not an industry... real estate is the industry, REIT is an investment vehicle.

it sounds like you want to save up for retirement and also learn about investing... if that's true, then my advice regarding the Roth would be to open it with vanguard and get VFINX to start out.
 
Originally posted by: Bryophyte
1. www.fool.com
2. www.sharebuilder.com (if you have a Costco membership, sign up through them to get a huge sign on bonus (50-75 bucks with the Passport coupon book, a bit less regularly) *they do Roths and investment accts so you don't have to have 2 different banks/brokerages.
Click to expand...

:thumbsup: on Sharebuilder. A great way to invest, pseudo D.R.I.P.'ng.
 
Originally posted by: QueHuong
Please recommend resources for a college student to get started in investments (sites, articles, books, forums, etc.)

So far, here is what I plan on doing:

- Place $1000 in Roth IRA and contribute $1000 yearly thereafter

- Open up an Ameritrade or eTrade account to invest $1000 in stocks. Probably mutual funds or specific stocks in one of the following industries: Healthcare, REIT, technology.

Is $1000 enough to play the stock market? It's only initially meant for me to get started and gain experience before I invest more money into the stock market.

Any tips?
Click to expand...

Instead of mutual funds, invest in spyders and ETF's - think of them like mutual funds that trade like stocks.

How much are you going to keep putting into your trading account(s)? $1000/yr? Traditional IRA allows $5k/year which will reduce your taxable base income (some benefit like that), if you need it.
 
Originally posted by: Sex Smurf
Originally posted by: QueHuong
Please recommend resources for a college student to get started in investments (sites, articles, books, forums, etc.)

So far, here is what I plan on doing:

- Place $1000 in Roth IRA and contribute $1000 yearly thereafter

- Open up an Ameritrade or eTrade account to invest $1000 in stocks. Probably mutual funds or specific stocks in one of the following industries: Healthcare, REIT, technology.

Is $1000 enough to play the stock market? It's only initially meant for me to get started and gain experience before I invest more money into the stock market.

Any tips?
Click to expand...

Instead of mutual funds, invest in spyders and ETF's - think of them like mutual funds that trade like stocks.

How much are you going to keep putting into your trading account(s)? $1000/yr? Traditional IRA allows $5k/year which will reduce your taxable base income (some benefit like that), if you need it.
Click to expand...

it's still 4k for roth and trad ira's actually
 
Originally posted by: gopunk
Originally posted by: Sex Smurf
Originally posted by: QueHuong
Please recommend resources for a college student to get started in investments (sites, articles, books, forums, etc.)

So far, here is what I plan on doing:

- Place $1000 in Roth IRA and contribute $1000 yearly thereafter

- Open up an Ameritrade or eTrade account to invest $1000 in stocks. Probably mutual funds or specific stocks in one of the following industries: Healthcare, REIT, technology.

Is $1000 enough to play the stock market? It's only initially meant for me to get started and gain experience before I invest more money into the stock market.

Any tips?
Click to expand...

Instead of mutual funds, invest in spyders and ETF's - think of them like mutual funds that trade like stocks.

How much are you going to keep putting into your trading account(s)? $1000/yr? Traditional IRA allows $5k/year which will reduce your taxable base income (some benefit like that), if you need it.
Click to expand...

it's still 4k for roth and trad ira's actually
Click to expand...

You're right. .. . :beer:
 
It all depends on whether you're planning on trading or investing.

If you're investing put as much money as possible into a ROTH IRA and don't touch it until absolutely necessary. This money will grow tax free and is a good way for you to get started in the world of investing. A lot of mutual funds require only a $500 minimum.

If you're trading, open an account at Ameritrade or Scottrade and invest in stocks. You'd be better off not putting the money into a mutual fund or ETF as you'll be paying comissions as well as mutual fund and ETF fees.
 
In the same boat as you (thought only 19)...I've pretty much been thinking about getting a Roth with Vanguard, just a matter of choosing which fund 😛
 
Originally posted by: RaynorWolfcastle
If it were my money, I'd be shorting Google stock ASAP
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Typical rookie. While you may get lucky and catch 15 points or so short term and probably right in the long run, shorting Google while the stock is still in uptrend is pure gamble and stupid. Play the trend. While trying to catch a falling knife or bottom in a stock or trying to short the top in a stock is fun, it's foolish. Shorting carries unlimited risks compared to only equity on the long side. Once Google is in a downtrend, you'll have plenty of chances to short at good odds.

Never stand in front of a whale as a small retail investor. Fidelity and Bill Miller Legg Mason are huge supporters of Google stock and own a large percentage of outstanding shares. They have billions to prop up their investments. You have couple thousand. You need to ride the whale. Not stand in front of it. Getting squeezed to a pulp is no fun. Ask people who shorted GOOG at $100. I doubt too many are still left.
 
Originally posted by: Naustica
Originally posted by: RaynorWolfcastle
If it were my money, I'd be shorting Google stock ASAP
Click to expand...


Typical rookie. While you may get lucky and catch 15 points or so short term and probably right in the long run, shorting Google while the stock is still in uptrend is pure gamble and stupid. Play the trend. While trying to catch a falling knife or bottom in a stock or trying to short the top in a stock is fun, it's foolish. Shorting carries unlimited risks compared to only equity on the long side. Once Google is in a downtrend, you'll have plenty of chances to short at good odds.

Never stand in front of a whale as a small retail investor. Fidelity and Bill Miller Legg Mason are huge supporters of Google stock and own a large percentage of outstanding shares. They have billions to prop up their investments. You have couple thousand. You need to ride the whale. Not stand in front of it. Getting squeezed to a pulp is no fun. Ask people who shorted GOOG at $100. I doubt too many are still left.
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Looks to me like people are starting to cash out: GOOG
In the end, it was really just an off-the-cuff comment about how Google is ridiculously overpriced right now.

Nonetheless, I think people have lost perspective when looking at Google. Do you really believe that Google deserves to be have a PE ratio 5 times higher than MS', 5 times higher than Oracle, and 2.5 times higher than Yahoo. Even if you take forward looking PE it's still way overvalued. Again. this is just MHO so take it with a grain of salt
 
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